Christmas can be a financially challenging time, especially if you’re on benefits. However, there is help available in the form of a Budgeting Advance. This advance can provide up to £812 for any one-off expenses you may incur during this season.
The Budgeting Advance is available to those who are on certain benefits, including Universal Credit. While you do have to repay the advance, there are no interest charges, making it a more cost-effective option compared to bank loans or credit card purchases. This could be useful if you encounter unexpected expenses, such as your fridge or oven breaking down before the holidays.
To be eligible for a Budgeting Advance, you must be receiving benefits like Universal Credit, Income Support, Employment and Support Allowance, Pension Credit, or Jobseeker’s Allowance. Your earnings should not have exceeded £2,600 (£3,600 for couples) in the past six months, and you should have been receiving benefits for at least six months.
The advance can be used for various unexpected costs, including broken appliances, repairs to your home, moving costs, essential items, maternity expenses, work-related expenses, and funeral expenses. The amount you can borrow depends on your circumstances, with the maximum being £812 for those with children, £464 for couples, and £348 for singles.
Repayments for the Budgeting Advance will be deducted directly from your future benefit payments over a two-year period. If you’re no longer receiving benefits, you’ll still be responsible for repaying the advance. If you start working, the repayments will be deducted from your salary.
You can apply for a Budgeting Advance through your Universal Credit account, the Universal Credit helpline, or your local Jobcentre. The decision on your application will be made the same day. If you’re not eligible for a Budgeting Advance, you can apply for an Advance Payment, which is up to 100% of your estimated first payment under Universal Credit.
Additionally, there are other forms of support available to help with utility bills, housing costs, and NHS prescriptions. Citizens Advice can provide information on benefits you might be entitled to and offer assistance with budgeting and managing bills.
If you’re unsure about the benefits you’re entitled to, you can use benefits calculators provided by various organizations to determine what you may qualify for. Remember, your exact entitlement will only be confirmed when you make a claim, but these calculators can give you an idea of what you might be eligible for.
If you need help with a money problem or have any questions, you can contact us via email. Join our Sun Money Chats and Tips Facebook group to share your tips and stories with others in similar situations.